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Covenants not to compete are frequently enforced where the former employer's "confidential information" may be used or disclosed unless the employee is restrained from competing.
Answer: While the Courts do not favor non-compete agreements, they are enforceable so long as they are 1) reasonable as to geographic scope, 2) reasonable as to duration of time, and 3) narrowly defined to limit activities that you performed for the employer.
Non-compete agreements are contracts between employers and employees that restrict an employee's ability to work for a competitor or start a competing business for a certain period of time after leaving their current job. In Texas, non-compete agreements are enforceable, but they must meet certain criteria to be valid.
Blue Pencil Rule If an Arizona court decides that a certain provision in a contract is not enforceable, it has two options, it can veto the entire agreement, and declare it unenforceable, or it can ?blue pencil? the section it deems unreasonable, and declare the remainder enforceable.
In summary, non-compete agreements are legal in Arizona, but do have limitations.
Four states?California, Minnesota, North Dakota and Oklahoma?have banned noncompete agreements entirely, and many other states have enacted restrictions, such as setting a compensation threshold or requiring advance notice.
Non-compete agreements are generally legal under Arizona law when they protect the employer from unfair business competition by a former employee. However, these agreements do have some limitations. Non-compete agreements must meet specific criteria to be legally valid.
California law bars covenants not to compete in nearly all circumstances. In Edwards v. Arthur Anderson, the California Supreme Court determined that the law should be read strictly, and not only void the ?unreasonable? noncompete clause, but all noncompete clauses other than those explicitly allowed in the code.